July 2019 Newsletter
EEO-1 Component 2 Pay Reporting
Here’s what we know:
A third party will be administering the EEO-1 Pay 2 component. A website with portal has been established to collect the data; employers have started receiving notices about this system and it will be live on July 15 with a filing deadline of September 30. Here is the link to the filing system: Comp2 EEO1 Filing
This report will NOT link back to your EEO-1 Component 1 report.
You must report two separate years of data (not two years of data for same people), picking any payroll period during October 1 – December 31 of 2017 and 2018. It does NOT have to match what you used to report Component 1.
If you are a federal contractor and you have less than 100 employees during any of these payroll periods, you do NOT have to file Component 2.
There are 12 pay bands within each EEO-1 category. Similar to Component 1, you will have to enter counts by race/gender categories within each band, by location. You will also have to report total hours worked. See the sample form: Online Filing Sample Form
You MUST use W-2 BOX 1 EARNINGS for each person in your data file for 2017 and 2018.
For hours worked:
NON EXEMPT employees: report ACTUAL FLSA hours worked (exclude paid vacations, holidays, leaves, etc.)
EXEMPT employees: report EITHER actual hours worked (if tracked) or can use a proxy of 40 hours for full time and 20 hours for part time exempt employees. We recommend the proxy unless you track actual hours worked for your exempt employees.
Here’s How to Prepare:
Assure you can access 2017 and 2018 W2 Box 1 earnings and can pull in with your demographic data (name, race, gender, location, job title, EEO-1 codes, etc.).
Assure you can access 2017 and 2018 hours worked, especially for non-exempt employees and assimilate with demographic and W2 data.
Assure EEO-1 codes are clean. This data might be used for statistical analysis. It’s too late to do pay equity analysis of people by EEO-1 categories (and frankly, we don’t believe it’s a good comparison basis) BUT if you see someone way outside of anyone else’s range in the EEO category, it could be that they are misclassified.
Here’s Our Advice:
Don’t be an early adopter. Prepare and gather data but wait to file towards the deadline. With any new government regulation, there are usually bumps along the road and the ability to request an extension if needed.
Upload is the way to go. This is a large amount of data. We recommend an upload to the system rather than manual entry. Upload File Specs
Don’t file if you don’t have to. Government contractors who have at least 50 but less than 100 during any part of the reporting period don’t have to file. Carefully check your payroll numbers if you are close.
Pick an easy date. If you clearly have over 100 employees, use 12/31 snapshot date unless you had a merger/acquisition later in the year where data might not be as accessible or reliable.
Let’s talk. If data is no longer available to you due to systems migrations, divestiture, etc. – let’s talk this through.
We will be available to assist our clients with this reporting. Because we are unaware of the time it will take, we will be billing these projects on an hourly basis vs. flat rate until we can get a handle on the complexity.
Contact Terri Swain for quote.
817-887-8009 o. 817-991-7486 c
Our founder, Terri Swain, will be speaking about high risk EEO violation areas (hiring, paying, promoting and firing) at the EEOC Technical Assistance Program in Dallas on August 7, 2019. See the link for registration and for information on this always informative workshop.
National Industry Liaison Group (NILG) Conference
We will be attending the National Industry Liaison Group (NILG) conference in Milwaukee at the end of July. During this conference we’ll hear from EEOC and OFCCP leadership, as well as top thought leaders. Learn more and sign up here: NILG Conference
This is a great conference for EEO/AA practitioners to attend. We’ll be posting updates as we hear them on facebook.
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